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Lantronix, Inc. Message Board

  • o08o.ugh64w o08o.ugh64w Oct 31, 2013 5:39 PM Flag

    Really good conference call

    Kurt knows how to run a call - he knows his stuff.

    By the statements made (or implied because as stated could not be discussed), there is some good stuff coming. It is also good to see, as Kurt indicated, their objective is to introduce a new product every quarter. This is where growth comes from - innovating, getting products into the market, and casting a wide net. Kurt made clear that ramping of products is beginning to take hold and will be seen in 2014, as well as 2015.

    The balance sheet looks good, the cash position is fine, no new money will need to be raised.

    We have seen the bottom.

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    • There was only one thing that disturbed me a bit from that conference call. Kurt said in his letter to shareholders that the new product sales are outpacing the legacy product sales decline, but then in the Q&A session, he says this will happen in the long-term. I have to listen to call again because I kept getting interrupted, but that is what it sounded like to me. If that is the case, why say new products are outpacing if this is not the case?

      Sentiment: Hold

      • 3 Replies to activeaction
      • Well revenue is down compared to last quarter and last year so it's pretty safe to say the legacy products are declining faster than the new.

      • I don't remember the context of the prior statement regarding legacy vs. new products, but could it have been phrased as "the 'growth' in new product sales is outpacing the 'decline' in legacy product sales"? And not necessarily that the amount of new product sales is 'more' than legacy product sales?

        I'm just trying to come to an understanding (as you are) as to what was previously said on the subject.

      • Here is the question/answer exchange on this. I don't have an answer for your question.

        Krishna Shankar - Roth Capital Partners, LLC, Research Division
        Okay. And then you mentioned that the legacy business continued to be a drag on revenue growth. But can you give us some sense for what portion of the total revenues are now, sort of from a legacy camp versus the new growth products?

        Kurt F. Busch - Chief Executive Officer, President and Director
        We're not breaking that out at this point, Krishna.

        Krishna Shankar - Roth Capital Partners, LLC, Research Division
        Okay. But you still have a relatively significant amount of legacy products in the kind of sales channel?

        Kurt F. Busch - Chief Executive Officer, President and Director
        Yes, absolutely. But the -- what we probably should point out is, though we've seen decline in the legacy products, primarily in the OEM Modules this last quarter, the efforts that we do on expanding our sales channel has boosted up some of the legacy products in the Enterprise Solutions. And we do feel that our new product growth will outstrip the decline in legacy products in the long term.

    • AGREE 100%

      Sentiment: Strong Buy

 
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